Malaysian Prime Minister Najib Razak and his Singapore counterpart Lee Hsien Loong will meet at a retreat in May to discuss how both countries can further strengthen bilateral cooperation, Malaysian state news agency Bernama reported.

Foreign Affairs Minister George Yeo told the Singapore Parliament Friday the country's relations with Malaysia under Najib were very good.

Replying to questions raised by members of parliament during a budget debate, Yeo also said that Malaysia's domestic challenges did not really affect bilateral relationship.

The minister said he had been in discussion with his Malaysian counterpart Anifah Aman on the implementation of the Points of Agreement on Keretapi Tanah Melayu Berhad land in Singapore.

Yeo said he was hopeful of a win-win outcome which would open up new areas of cooperation between the two neighbours.

He pointed out in particular the Joint Ministerial Committee, through which both sides had been discussing further cooperation in Iskandar Malaysia, including Singapore's investment in an iconic project and the possibility of linking the two urban rails together.

The minister also said that the support of the Johor ground was a necessary precondition in the cooperation.

Yeo said that when Minister Mentor Lee Kuan Yew visited Johor Baharu to pay his last respects to the late Sultan Iskandar of Johor, the new Sultan, Sultan Ibrahim, expressed clearly his wish for stronger relations between Johor and Singapore.